UFCU SPONSORED CONTENT — Credit unions offer services similar to banks, like car and home loans, checking and savings accounts, and credit cards, but they are not banks. Credit unions follow seven guiding cooperative principles to serve their Members and the community around them. A lot of people are curious about joining a credit union, and there are four simple reasons why becoming a Member is a good idea for everyone.
They Put People First, Not Profits
Credit unions are nonprofit organizations that exist to serve their Members and the community. Unlike traditional banks, there are no outside stockholders who receive payments or dividends. That means that profits stay in the credit union and are returned directly to the Members through lower interest rates, lower fees, higher interest yields, and other discounts. Credit unions put your money to work for you in ways that serve you and not outside stockholders.
Their Members Own Them
Members of a credit union include every person and business who makes a deposit in an account. So when you pick a credit union as your financial institution, you’re now a Member and owner. In fact, every Member is treated equally and has an equal say, regardless of the length of time a person has been a Member or how much money they have in their account. Members also elect the volunteer board of directors that govern the credit union, which means the Members’ needs always come first.
They Serve Their Community
One of the credit union guiding cooperative principles is improving the community through volunteerism, programmatic and financial support, and strategic partnerships and sponsorship. Those who prefer to do business with organizations actively involved in making their community a better place need look no further than credit unions.
They Are Easy To Join
There is a misconception that joining a credit union is difficult. In general, the most common requirement is that a Member lives, works, or worships in the same community the credit union is located. From there, a Member needs only to make a deposit, often $5 or $10, to get a ‘share’ of the credit union. And that’s it–now you’re a Member and owner!
If you’re looking for more helpful financial tips and tools to better plan, spend, save, and borrow, check out PlanU by UFCU. You’ll find options from talking with a financial health expert to creating a personalized resource center to meet your needs.